Musk, the CEO and largest shareholder of the electric vehicle maker, said on Twitter on Tuesday that he has secured private funding.
Musk has also clashed repeatedly with critics, especially investors who have taken short positions on the stock, meaning they benefit when the price falls.
Earlier today, I announced that I'm considering taking Tesla private at a price of $420/share.
Musk's tweet comes as Tesla faces continued pressure to ramp up output of the Model 3 sedan, its first effort at the middle market. At $420 a share, Tesla would have a market cap of around $71 billion.
"Am considering taking Tesla private at $420". With approximately 170 million outstanding shares, Musk's proposed privatization of the company at $420 per share would require $71.4 billion, about a 17 percent increase. "Given his historic frustration with short sellers, analysts and certain parts of the press, it is perhaps also not surprising that he has given consideration to taking the company private", Galliers said.
Tesla Motors started selling its stock to the public in 2010 - the first initial public offering of a US automaker in more than a half-century.
Shares in Tesla opened at $343.84 before hitting a high of $371.15 around mid-day on the news.
During a conference call in May, Mr. Musk shut down questions from analysts, calling them "boring" and spent much of the time talking to an investor who runs a YouTube channel, prompting an after-market sell-off of Tesla's shares.More news: First look at Margot Robbie in new film with Leonardo DiCaprio
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The decision to go private would have to be approved by shareholders, but Musk believes taking Tesla private would be an "enormous opportunity for all of us".
While Mr Musk has previously discussed the drawbacks of being a public company, he has also used his Twitter account in ways that surprised investors.
Shares finished up 11 per cent at US$379.57 after being suspended for about 90 minutes following a series of Musk statements on Twitter in which he initially floated the idea of going private.
The SEC did not immediately respond to a request from Reuters for comment on Musk's tweets.
The company's stock had been up slightly earlier in the day after the Financial Times reported that Saudi Arabia had quietly built a large stake in Tesla.
Since Tesla went public in 2010, its stock has been on a roller coaster ride, gaining nearly 2,000 percent in eight years, but also reportedly becoming at times the most shorted stock in history.
"This is a boon for any bondholder at Tesla, because most of the bonds are convertible notes".
Musk was clear in his email that a final decision has not been made, and, come to think of it, it's not even clear if this move would be possible.